FAQ

A coupon is a certificate with a stated value if it is used when purchasing a specified product in accordance with the coupon's terms and conditions. The consumer presents the coupon to the retailer selling the product at the time of purchase. The retailer will reduce the cost of the product by the specified amount on the coupon.

Coupons are issued by manufacturers to give consumers immediate discounts on the purchase of the specified items, which may be virtually any product found in retail stores.

Most coupons are distributed to consumers in Sunday newspapers in the form of glossy inserts.

It’s easy to use coupons. Simply cut them out of the newspaper or other source, such as a coupon printed on a box, and present them to the cashier when you purchase the product specified on the coupon.

You will get an immediate savings in the amount of the value printed on the coupon, if the other terms and conditions of the coupon are satisfied.

The sale or transfer of coupons is a violation of virtually all manufacturers’ coupon redemption policies. These policies are generally printed on the coupons or are available from the manufacturer upon request. Any sale or transfer voids the coupon.

People purchasing coupons have often been associated with organized criminal activities. They often purchase the coupons as one aspect of a scheme to defraud the coupon issuers/manufacturers, usually by seeking to redeem coupons without purchasing any products. Individuals selling coupons to such crime rings have been charged with and convicted of criminal violations.

Individuals selling or auctioning coupons often know that such sales and auctions are in violation of the terms and conditions of the coupons. As such, they may include an invalid disclaimer, such as, "I'm selling my time to clip the coupons, not the coupons themselves". Such disclaimers are invalid and do not provide any legal protection to either party. Such obviously invalid disclaimers merely serve to prove that the seller/auctioneer knows that their illicit coupon sales are inappropriate, wrong, and subject to civil and/or criminal penalties, depending on the situation.

There are many organizations on the Internet and elsewhere engaged in the sale of coupon certificate booklets. Generally, these organizations are either trying to sell the certificate booklets themselves or they are offering "business opportunities" and soliciting others to act as distributors of the booklets.

If you are approached by one of these groups, you should ask some questions:

Where do you get the coupons?

How do you prevent stolen or counterfeit coupons from entering your inventory?

What are all of the costs and handling fees?

Has any manufacturer endorsed the organization? (If yes, find out the name and phone number.)

How many of your distributors are making a profit? Ask for the overall average.

You are urged to call the Federal Trade Commission's Bureau of Consumer Protection at (202) 326-3650 and request a copy of the FTC's free publication "FACTS FOR CONSUMERS: Costly Coupon Scams."

Coupon fraud occurs whenever someone intentionally uses a coupon for a product that he/she has NOT purchased or otherwise fails to satisfy the terms and conditions for redemption, when a retailer submits coupons for products they have not sold or that were not properly redeemed by a consumer in connection with a retail purchase; or when coupons are altered/counterfeited. These activities are almost always in violation of Federal, State or local laws.

Coupon fraud also increases costs for consumers and makes it more difficult for honest consumers to legitimately use coupons.

What are the signs of a coupon scam?

Does it sound too good to be true?

Is there pressure to commit immediately?

Are there claims to make extraordinary amounts of money in a short time frame?

Are there vague or hostile answers to your questions?

Are there claims that no risks are involved?

Are there upfront fees to participate?

Does the deal involve the sale or purchase of manufacturers' cents-off coupons?

Are there identical or old endorsements. You might see some great endorsements of the organization. When was the endorsement made? Last month or several years ago? Can you talk directly with the person making the endorsement? Do you see the same statements on numerous web sites?

Penalties for those convicted of coupon fraud related crimes vary by each case and the number of laws violated.
As of this date,
Longest prison sentence: 17 years
Highest financial penalty: $5 million
Prison sentences of three to five years are not uncommon. Financial penalties generally vary, but have often been in excess of $200,000.